DoD awards $95.3M for barracks construction, highlighting full and open competition with 3 bidders

Contract Overview

Contract Amount: $95,322,298 ($95.3M)

Contractor: Archer Western Contractors, LLC

Awarding Agency: Department of Defense

Start Date: 2009-05-29

End Date: 2011-04-02

Contract Duration: 673 days

Daily Burn Rate: $141.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE - CONSTRUCT FIFTEEN (15) BARRACKS

Place of Performance

Location: FORT STEWART, LIBERTY County, GEORGIA, 31314

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $95.3 million to ARCHER WESTERN CONTRACTORS, LLC for work described as: BASE - CONSTRUCT FIFTEEN (15) BARRACKS Key points: 1. Contract awarded to Archer Western Contractors, LLC for barracks construction. 2. The contract was procured through full and open competition. 3. The base value of the contract is approximately $95.3 million. 4. The project duration is estimated at 673 days. 5. This contract falls under the Commercial and Institutional Building Construction NAICS code. 6. The contract type is Firm Fixed Price, indicating price certainty. 7. The award was made by the Department of the Army.

Value Assessment

Rating: good

The base contract value of $95.3 million for constructing fifteen barracks appears to be within a reasonable range for large-scale construction projects of this nature. Benchmarking against similar military construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be beneficial for the government if managed effectively. However, without detailed cost breakdowns or comparisons to industry standards for barracks construction, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Three bids were received, suggesting a moderate level of competition for this project. While three bidders is generally considered competitive, a higher number of bidders could potentially lead to more aggressive pricing and a wider range of innovative solutions. The level of competition here likely ensured a fair market price was achieved.

Taxpayer Impact: The use of full and open competition with multiple bidders generally benefits taxpayers by fostering a competitive environment that drives down costs and encourages efficiency. This process helps ensure that government funds are used judiciously by selecting the most cost-effective and capable offeror.

Public Impact

Service members will benefit from improved living quarters through the construction of new barracks. The project will deliver fifteen new barracks facilities. The construction is located in Georgia (ST: GA, SN: GEORGIA). The project is expected to create jobs in the construction sector within Georgia. This investment supports the Department of Defense's infrastructure modernization efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occur, despite the fixed-price nature.
Ensuring timely completion within the 673-day duration is critical to avoid impacting troop readiness.
Quality control and adherence to construction standards must be rigorously monitored to ensure durability and safety of the barracks.

Positive Signals

Firm fixed-price contract structure shifts cost risk to the contractor.
Full and open competition with three bidders suggests a competitive bidding process.
Award to a known entity (Archer Western Contractors, LLC) may indicate a track record of performance, though not explicitly detailed here.
The project directly addresses a need for improved military housing infrastructure.

Sector Analysis

The Commercial and Institutional Building Construction sector encompasses a wide range of projects, from office buildings to educational facilities and, in this case, military barracks. The market for large-scale government construction contracts is often characterized by significant competition among established firms. The value of this contract, at approximately $95.3 million, places it as a substantial project within this sector. Comparable spending benchmarks for military barracks construction can vary widely based on location, size, and amenities, but this award appears to be a significant investment in military infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SB: false) and there is no specific mention of subcontracting goals for small businesses (SMB: false). This suggests that the primary award went to a large business, Archer Western Contractors, LLC. While large prime contracts can sometimes lead to subcontracting opportunities for small businesses, the absence of explicit set-aside or subcontracting requirements in the provided data means the direct impact on the small business ecosystem for this specific award is unclear and likely minimal unless the prime contractor voluntarily engages small businesses.

Oversight & Accountability

Oversight for this Department of the Army contract would typically involve contract officers, contracting specialists, and potentially quality assurance representatives from the Army Corps of Engineers or a similar oversight body. Accountability measures are inherent in the firm fixed-price contract type, which penalizes the contractor for cost overruns. Transparency is generally maintained through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract lifecycle.

Related Government Programs

Military Construction, Army
Barracks and Dormitory Construction
Department of Defense Facilities
General Building Construction

Risk Flags

Potential for schedule delays impacting military readiness.
Risk of unforeseen site conditions leading to cost adjustments.
Ensuring consistent quality across fifteen barracks construction sites.
Labor availability and management challenges in the construction sector.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $95.3 million to ARCHER WESTERN CONTRACTORS, LLC. BASE - CONSTRUCT FIFTEEN (15) BARRACKS

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN CONTRACTORS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $95.3 million.

What is the period of performance?

Start: 2009-05-29. End: 2011-04-02.

What is the historical spending pattern for barracks construction by the Department of the Army?

The Department of the Army consistently allocates significant funds towards military construction, including barracks, to maintain and upgrade troop housing. Historical data reveals a steady investment in barracks modernization and new construction over the past decade, driven by evolving force protection standards, troop capacity needs, and the aging of existing facilities. Annual spending can fluctuate based on budget appropriations, strategic priorities, and the number of major construction projects initiated. For instance, in years with significant troop redeployments or base realignments, spending on barracks construction often increases. While specific aggregate figures require detailed analysis of historical budget documents and contract awards, the Army's commitment to providing adequate and modern living quarters for service members is a persistent budgetary item.

How does the per-unit cost of these barracks compare to similar military housing projects?

Determining the precise per-unit cost requires knowing the number of service members each barrack is designed to house and the total square footage. However, the base contract value of $95.3 million for fifteen barracks suggests an average project cost of approximately $6.35 million per barrack. This figure needs to be contextualized by factors such as location (which impacts labor and material costs), the specific amenities included (e.g., private rooms, shared facilities, technological infrastructure), and the overall size and complexity of each building. Benchmarking against other military barracks projects awarded in similar geographic regions and during the same time period would be necessary for a robust comparison. Generally, costs can range significantly, but this average suggests a substantial investment per unit, reflecting modern construction standards and potentially higher-cost regions.

What is Archer Western Contractors, LLC's track record with large-scale federal construction projects?

Archer Western Contractors, LLC, part of the Walsh Group, has a substantial track record in executing large-scale construction projects, including significant federal and military contracts. They have been involved in building infrastructure, healthcare facilities, educational institutions, and transportation projects across the United States. Their experience often includes complex projects requiring adherence to stringent government regulations and quality standards. While specific performance metrics for past projects are not detailed here, their consistent involvement in major federal contracts suggests a capacity to manage complex logistics, large workforces, and significant budgets. Reviewing their project portfolio and any publicly available performance evaluations or past performance questionnaires (PPQs) would provide a more detailed understanding of their capabilities and reliability.

What are the primary risks associated with this barracks construction contract?

The primary risks associated with this barracks construction contract include potential cost overruns, despite the firm fixed-price (FFP) nature, which can arise from unforeseen site conditions, material price escalations beyond contingency, or scope creep if not managed tightly. Schedule delays are another significant risk, potentially impacting troop readiness and incurring penalties. Quality control issues during construction could lead to long-term maintenance problems or safety concerns. Furthermore, labor availability and management in the construction sector can pose risks, especially for large projects requiring a substantial workforce. Finally, ensuring compliance with all environmental regulations and security protocols during construction is critical.

How does the firm fixed-price contract type benefit the government in this scenario?

The firm fixed-price (FFP) contract type offers significant benefits to the government in this barracks construction scenario by providing cost certainty. Under an FFP contract, the contractor, Archer Western Contractors, LLC, assumes the primary responsibility for cost overruns. This means the government's financial liability is capped at the agreed-upon contract price, assuming no contract modifications occur. This structure incentivizes the contractor to manage costs efficiently and complete the project within budget. It simplifies financial planning for the Department of the Army and reduces the administrative burden associated with monitoring contractor costs compared to cost-reimbursement contracts. The predictability of the final cost is a major advantage for budgeting and fiscal management.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walsh Group Ltd., the (UEI: 121476675)

Address: 3715 NORTHSIDE PKWY BG 100 STE 550, ATLANTA, GA, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $95,488,314

Exercised Options: $95,488,314

Current Obligation: $95,322,298

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G08D0042

IDV Type: IDC

Timeline